Materiality Review Cycle

Materiality Review Cycle

The Daigas Group identifies the materiality for the Group as a means of grasping the possible impacts of the Group's business activities on the environment and society, and conducting its business operations while managing ongoing impacts and these possible impacts. The Group identified materiality for the first time in FY2014, and has been conducting PDCA management since FY2015. Every year, the progress of actions taken under each indicator is confirmed while problems to be tackled are studied in light of the progress made. Fields whose indicators are found to be short of the required levels are improved and managed properly. The Daigas Group will continue to review materiality on a cyclical basis and fulfill its responsibility to the environment and society. By doing so, we aim to create value for stakeholders and contribute to the development of a sustainable society.

Materiality Review Cycle

STEP 1: Evaluate Materiality Activities

We will comprehensively evaluate the activities undertaken every year under each materiality item. Subject to the evaluation is the progress of CSR actions under main KPIs. We will also check whether each target has been set appropriately while recognizing what has been achieved and what remains as problems.
In evaluating materiality activities, we will interview persons in charge of management in relevant in-house sections, while holding meetings with outside experts. Based on the interviews and the meetings, we will sort out new issues and important issues to be studied for materiality review.
Indicators under the previous materiality (FY2019 - FY2021), and its results and evaluation are shown below.

■ Indicators under the previous materiality (FY2019 - FY2021), and its results and evaluation

CSR
Charter
Materiality Indicator Changes from previous indicator Goal from FY2019 onward FY2019
Results
FY2020
Results
FY2021
Results
Customer Health and Safety Percentage of city gas for which health and safety impacts are assessed for improvement against total city gas provided by Osaka Gas 100% 100% 100% 100%
Energy / Emissions
Boundary expanded

Contribution to reduction in CO2 emissions
Reduction of 7 million tons
(FY2021 goal)
Total reduction of 1.67 million tons Total reduction of 3.32 million tons Total reduction of 5.60 million tons
Local Communities Percentage of operations with implemented local community engagement, impact assessments and development programs 100% 100% 100% 100%
Customer Privacy Total number of substantiated complaints regarding breaches of customer privacy Assessment of management situation Took measures to prevent recurrence of mishandling of information No substantiated complaints were filed against the Daigas Group for breaches of customer privacy. No substantiated complaints were filed against the Daigas Group for breaches of customer privacy.
Training and Education
Newly established

Average hours of training per year per employee
Development of human resources, improvement of work environment

Average hours of training per employee: 25.1

e-Learning (security, information security, environment) program
No. of participants:

5,029/course

No. of hours:

3.67 hours/person

  • * Partly includes temporary employees and part-time workers

Average hours of training per employee: 25.3

e-Learning (security, information security, environment) program
No. of participants:

5,324/course

No. of hours:

3.17 hours/person

  • * Partly includes temporary employees and part-time workers

Average hours of training per employee: 25.1

e-Learning (security, information security, environment) program
No. of participants:

5,411/course

No. of hours:

3.61 hours/person

  • * Partly includes temporary employees and part-time workers
Diversity and Equal Opportunity
Newly established

Percentage breakdown of employees and executives by gender and age
Promotion of diversity Percentage of women among personnel hired for career-track positions:

36.7%

Percentage of women in management positions:*

3.4%

  • *Positions of manager or higher
Percentage of women among personnel hired for career-track positions:

28.3%

Percentage of women in management positions:*

3.5%

  • *Positions of manager or higher
Percentage of women among personnel hired for career-track positions in April 2020:

26.8%

Percentage of women in management positions:*

5.0%

  • *Positions of manager or higher
Common Themes Supplier Assessment
(Impact on the environment and society, human rights and labor practices)
Boundary expanded

Percentage of new suppliers of materials that have been selected using criteria regarding the impact on the environment and society, human rights and labor practices
100% 100% 100% 100%
Economic Performance
Content changed

Financial impacts, risks and opportunities due to climate change
Recognition of risks and opportunities Recognition of risks and opportunities Recognition of risks and opportunities Recognition of risks and opportunities

STEP 2: Decide the Order of Materiality Items according to Priority and Identify Boundaries to Be Managed

Through repeated discussions with the relevant internal organizations, we identify materiality items that must be given higher priority, as well as internal and outside “boundaries” that must be addressed. This process takes into consideration our business operations and changes in the business environment, as well as social trends related to sustainability. In the latest materiality review process, we took into consideration the Long-Term Management Vision 2030, which was compiled in March 2017, and the Medium-Term Management Plan 2023, which was compiled in March 2021. In terms of social trends, we focused on global risks, changes in the business environment, and the contribution to the SDGs through our business.

STEP 3: Confirm if the Reviewed Materiality Is Appropriate through Outside Experts and Dialogue with Them

Following internal examinations and reviews of the materiality, we request an evaluation of the appropriateness of the materiality to outside experts in certain fields, who represent the voices of society and stakeholders.
The experts are asked to provide opinions on whether the items recognized by us as materiality are appropriate, and whether there are any other items that should be recognized as materiality in light of the perceived views of society and our stakeholders. We will examine the materiality once again based on these opinions.

STEP 4: Identify New Materiality

We finalize the newly identified materiality items and key performance indicators (KPIs) with the approval of the Group's ESG Committee, the ESG Council, and the Board of Directors, and establish a management framework before implementing the necessary initiatives.


Sustainability of
the Daigas Group
President's Commitment
Values and Sustainability Promotion of the Daigas Group
Daigas Group's Values Daigas Group Charter of Business Conduct and Management Policy Daigas Group Code of Business Conduct Sustainability Promotion System and Management Stakeholder Engagement Initiatives the Daigas Group Participates In Commendation from the Outside
Sustainability Management and Value Creation Process
Value Creation Process of the Daigas Group Long-Term Management Vision 2030 Medium-Term Management Plan 2023 Daigas Group Carbon Neutral Vision
Actions on Materiality
Materiality of the Daigas Group Materiality Review Cycle Customer Health and Safety
(FY2021 Report)
Energy / Emissions
(FY2021 Report)
Local Communities
(FY2021 Report)
Customer Privacy
(FY2021 Report)
Supplier Assessment
(FY2021 Report)
Training and Education
(FY2021 Report)
Diversity and Equal Opportunity
(FY2021 Report)
Economic Performance
(FY2021 Report)
Creating Value for Customers
(Charter I)
Contributing to the Sustainability of the Environment and Society
(Charter Ⅱ)
Engaging with and Contributing to Society (Charter Ⅲ) Respecting Human Rights
(Charter IV)
Complying with Laws and Regulations (Charter V) Providing Work Environment That Supports Employees’ Personal Growth (Charter VI)
Corporate Governance
Corporate Governance Risk Management Compliance Messages from Outside Directors
Value Chain and Sustainability
Consideration for the Value Chain and Stakeholders Social Impact of Business Activities in Our Energy Value Chain and Our Efforts toward Sustainability
Daigas Group's Efforts for SDGs
Special Features: Co-create Value for a Sustainable Future - Daigas Group×Stakeholders Achieving a Low Carbon / Carbon Neutral Society Establishing Lifestyles and Businesses Adjusted to the New Normal Enhancing Resilience of Customers and Society Back Numbers of Special Features
FY2021 Activities Report
Creating Value for Customers (Charter I)
Charter I Index Management for Creating Value for Customers Safety and Security 1:
Procurement Stage
Safety and Security 2:
Processing Stage
Safety and Security 3:
Distribution Stage
Safety and Security 4:
Consumption Stage
Incorporating Customer Opinions Proposing New Value
Contributing to the Sustainability of the Environment and Society (Charter Ⅱ)
Charter Ⅱ Index Management toward Contributing to the Sustainability of the Environment and Society Environmental Management Environmental Management: Indicators, Targets and Results Actions for Climate Change: Recognition of and Action on Risks and Opportunities Actions for Climate Change: Method to Evaluate Effects of CO2 Emissions Reduction Actions for Climate Change: Working to Reduce CO2 Emissions in Business Activities Actions for Climate Change: Working to Reduce CO2 Emissions at Customer Sites Efforts in Resource Recycling Conserving Biodiversity Developing Environmental Technologies Addressing Environmental Risk Promotion of Green Purchasing Environmental Communication
Engaging with and Contributing to Society (Charter Ⅲ)
Charter Ⅲ Index Management of Engagement with and Contribution to Society Social Contribution Activities Corporate Volunteering Activities under the Small Light Campaign Activities for Promoting Communication with Society Activities at Osaka Gas' Foundations
Respecting Human Rights (Charter IV)
Charter IV Index Status of Management regarding Respect for Human Rights Human Rights Due Diligence Action on Human Rights
Complying with Laws and Regulations (Charter V)
Charter V Index Management for Complying with Laws and Regulations Compliance Promotion Efforts Efforts for Protection of Personal Information Information Security Consultations and Reports from Partner Companies
Providing Work Environment That Supports Employees’ Personal Growth (Charter VI)
Charter VI Index Status of Management to Support Employees' Personal Growth Employment Acceptance of Diversity Balancing Work and Family Human Resource Development and Rewards Communication Between Employees and Company Improving Occupational Health and Safety
Reporting Guidance and Guidelines and ESG Data
Reporting Guidelines
ESG Data
Environmental Performance Data Social Data Governance Data
Reports
Policy on Reporting Sustainability Activities Third-Party Review /
Third-Party Verification
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